I can’t say I was surprised that Freddie Mac’s mortgage rates increased on May 21. But I did raise my eyebrows when I saw just the significance of an incline we were dealing with.
The average 30-year fixed mortgage rate spiked by 15 basis points to 6.51%. This is the first time it’s surpassed 6.5% in 2026, and the largest weekly change since March, just a few weeks after the U.S. and Israel attacked Iran. It’s also the highest 30-year rate since August 2025.
Based on my years of reporting on mortgage rates and the housing market, I’ve learned that even a tiny bump in mortgage rates can sideline potential homebuyers. But this is more than just a small uptick.
So, how worried should homebuyers be?
I interviewed two mortgage rate experts to gain insider perspectives about how mortgage rates are realistically affecting buyers and the housing market. I spoke with Senior Vice President at TTR Sotheby’s International Realty Corey Burr and Regional Vice President of William Raveis Mortgage Melissa Cohn.
They gave me some good news and bad news. Let’s start with the good news.
Freddie Mac rates are weekly, but mortgage rates change daily
Freddie Mac mortgage rates help us understand rate trends in the U.S., but like any data, they have their limits. The government-sponsored enterprise (GSE) only publishes its national average rates once per week.
Mortgage rates are constantly fluctuating, though. They change daily.
For example, Mortgage News Daily’s rate index shows daily shifts in interest rates. With Freddie Mac data, all we see is that rates have soared since last week.
But by looking at the MND data, we can see that the national average 30-year rates actually decreased on May 20 and May 21 from the previous couple of days, according to the organization’s methodology.
Related: Fannie Mae forecasts change in mortgage rates, housing market
“Rates will fluctuate every day, but finding a property that suits one’s lifestyle is hard,” Burr told TheStreet. “For that reason, I’m advising my buyer clients to keep shopping with full intensity because I know that rates might fall again before they find their ideal property.”
Of course, this also means mortgage loan rates could increase by the time you find your dream home. None of us have a crystal ball to help us time the real estate market. But the overall message is that rates are constantly changing, so don’t become too discouraged by weekly rate reports.
High mortgage rates are impacting the housing market
Now for the bad news. High mortgage rates are hurting the housing market overall.
“Mortgage rates have moved significantly higher over the past 3 months as the war in Iran remains unresolved, and oil prices continue to climb, driving inflation up with it,” Cohn told TheStreet.
“The average rate of a 30-year fixed was below 6% when the war started at the end of February and is now over 6.50%,” she continued. “These higher rates are creating a drag on the real estate market as it gets harder and harder to qualify for financing, and prices haven’t dropped enough to compensate for the higher rates.”
More on mortgage rates and the housing market:
- Fannie Mae predicts shift in home sales, real estate market
- Non-QM loans solve major problem facing self-employed borrowers
- Mortgage rate gridlock sparks housing market shift
The Zillow April Market report revealed that fewer people bought a home in April than in years past. It was also the first month in 2026 that annual new home listings outpaced home sales.
Zillow analysts believed rising mortgage rates held back many would-be homebuyers in April. And now mortgage rates are only increasing more drastically. We’ll have to wait for the May data to see how rates continued to impact home sales this spring.
Is 2026 still a good time to buy a house?
With high mortgage rates that are hurting the housing market, it’s clear that 2026 isn’t going to be the “Great Housing Reset” that real estate experts once predicted.
But I wouldn’t go so far to say it’s a “bad time” to buy a house. Whether or not it’s a good time to buy depends on your specific situation. There are several factors to consider.
- If you can still afford a home loan at the current rates, don’t let today’s higher rates stop you from house hunting. “It’s always a good time to buy when you find the right house at the right price,” Cohn said. “Mortgages can always be refinanced.”
- Housing inventory has increased in 2026. With more home options and fewer homebuyers, you may not face much competition when you find a place you love. High supply and low demand also mean you could get a good deal on the house.
- Mortgage rates could decrease later in the year. If homes that are currently listed stay on the market, this gives you an advantage. “Buyers will have increasing opportunities to strike better deals on the properties that stay on the market longer and those sellers’ motivation level to sell increase, particularly for properties that are not the most desirable in any market,” Burr said.
- If you want to wait until later in 2026 to buy, consider spending the next few months improving your credit score, paying down debts, and saving for a larger down payment. Mortgage lenders usually reward stronger financial profiles with lower interest rates.
Related: Redfin unveils huge shift in home sales, housing market
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